Taxation Issues in Licensing Agreements // Licensing Russia

Licensing Russia portal published an article "Taxation Issues in Licensing Agreements" by Valery Narezhny, Ph.D., Partner (Gorodissky & Partners, Moscow).

The article examines the key contentious issues related to the taxation of licensing agreements, including challenges in defining the subject of the contract, separate accounting of transactions for VAT purposes, the use of objects before the registration of rights, taxation of payments to foreign licensors and substantiation of royalty amounts. It also provides recommendations for minimizing tax risks when drafting and executing such agreements.